In consideration for its wafer supply commitment, Tower will receive warrants to purchase capital stock of Chip Express.

Under the terms of the agreement, Tower will supply Chip Express with wafers fabricated using Tower's advanced manufacturing processes. Chip Express will use the resulting generic wafers for its laser programmable gate array (LPGA) customization process for prototyping, as well as for volume manufacturing. This will allow for rapid prototype manufacturing followed by compatible volume production at competitive pricing.